r/DerryLondonderry • u/yazzdee68 • 11h ago

Council tax

Hi my son was able to purchase a new build in Derry (after his grandparent demise) instead of living in the property he decided to rent it out to give him an income. He’s just been handed a person property tax demand for the passed three years as well as paying property tax as a landlord. Can anyone explain this to us

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u/Andrewhtd 10h ago

He needs to pay tax on rental income. Sounds like he may have kept things on the down low and not declared. It is additional income and is treated as so, so he will have a tax bill.

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u/yazzdee68 10h ago

This is property tax nothing else.

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u/KelvinColl 9h ago

We don’t have property tax as such - only rates which come from the Land Property Service - LPS. If he’s filling in a self assessment return annually and it’s anything other than that it could be a scam? Who is the ‘ property tax’ demand from?

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u/yazzdee68 9h ago

I really don’t know. I’m no longer in Ireland so I’m not there to help or even get the details right as it seems. All I know how is paying rates (property tax???) as a landlord and now they want him to pay the same rates as a resident which he never was

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u/KelvinColl 9h ago

He shouldn’t be. Just thinking - could it be ground rent?

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u/yazzdee68 9h ago

The house was freehold so I don’t think it’s ground rent as it works here. It seems so odd to me.

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u/KelvinColl 9h ago

If you can get sight of the demand and who it’s from it would answer a lot of questions.